Blagojevich, Democratic leaders want strong pro-consumer credentials

Gov. Rod Blagojevich and key senators searched Friday for a new chairman for the state's utility regulatory commission, with both camps hoping to find a consumer-friendly candidate who can pass muster with the Illinois Senate.

Aides to Blagojevich vowed to find a new nominee with credentials similar to those of veteran utility watchdog Martin Cohen, whose appointment to head the Illinois Commerce Commission was rejected by the Senate Thursday.

Meanwhile, top Senate Democrats who opposed Cohen's nomination approached leading activists in search of their own candidate who might have credibility with consumers.

But the activists are still smarting from the defeat of Cohen, former director of the Citizens Utility Board, whose nomination ran into trouble with business leaders worried whether he could be fair to utility companies regulated by the ICC.

As one consumer group started a voter registration drive against the senators who opposed Cohen, other Cohen allies complained about his treatment in the Senate.

Cohen's nomination died at the hands of a quiet but effective lobbying campaign.

"His nomination did not get killed in a spray of gunfire," said Sen. Jeff Schoenberg (D-Evanston). "He was shot with a silencer."

The fight against Cohen was unusual for the Statehouse.

Opponents did not circulate fact sheets or set up phone banks to flood lawmakers with calls expressing concern about Cohen's resume. There was no throng of lobbyists pulling lawmakers out of the chamber to make their case, and witnesses did not come forward to speak against Cohen.

Instead, a few top legislators publicly expressed their concerns about whether Cohen could be fair to the utilities. Among them was Sen. Rickey Hendon (D-Chicago), co-chairman of the committee in charge of executive appointments, who complained that Blagojevich had not come to him and Senate President Emil Jones (D-Chicago) to discuss Cohen's nomination in advance.

Jones was among those expressing doubts about Cohen's impartiality. Jones has been the beneficiary of more than $219,000 in campaign contributions from utility interests.

In Thursday's vote, several Democrats voted "present" instead of for or against Cohen, depriving him of the votes he needed for confirmation. He came up two votes short.

The vote sent a message to Blagojevich that they want to discuss his nominees in advance.

Although Blagojevich lost his nominee, some of his allies contend he came out ahead. With his re-election campaign soon to begin in earnest, Blagojevich has aligned himself with pro-consumer interests and bolstered his reformist image.

Meanwhile, senators who voted against Cohen risk being portrayed as taking the side of big business against consumers, an uncomfortable position for the left-leaning caucus.

On Friday, feelings were raw in the Capitol building. Hendon was angry that he had not heard from the governor's office since Cohen's nomination went down in flames.

"I do understand the governor and the president may have chatted," Hendon said. "That's fine. But I'm chairman of executive appointments. They have not reached out to me in that capacity, and they should."

Beating the bushes

Hendon and other Democrats have contacted advocacy groups, including AARP and CUB, seeking names for consideration. Hendon will forward those names to Blagojevich.

"I think they know best who they feel comfortable with," Hendon said. "And since it's so dear to their hearts, and I understand why, I think the nomination should come from those groups. I would hate to see the governor go outside that circle to choose someone."

Aides to Blagojevich said he would be glad to get those.

"We welcome suggestions from them and from others as well," said spokeswoman Rebecca Rausch. Still, the governor's office was conducting its own search.

Potential choices

Sources say one person under consideration is Pat Welch, a former downstate senator who helped negotiate complicated utility legislation while in office. Another possible contender is William McNary, co-director of Citizen Action/Illinois.

Among the groups asked to suggest candidates for the ICC job is the Environmental Law & Policy Center.

"We have been asked by a variety of people, both through the governor's office and legislators," said Executive Director Howard Learner. "It's not one person asking, it is many."

Learner said his organization expects it will put forward several names. He indicated he was not among them. Learner has been an aggressive advocate during his career and may have burned some bridges with powerful enemies.

Another group sure to have input is CUB.

"The consumer advocate community is discussing this issue now," said David Kolata, executive director of the group. "We certainly think a consumer advocate needs to be on the ICC."

As they work to select a new nominee, the players are operating with differing views of the ICC's duties.

Advocates see the commission's role as protecting consumers from utilities offering predatory prices and unreliable service.

Doug Whitley, president and chief executive of the Illinois Chamber of Commerce, sees things differently.

"Its not the anti-commerce commission," he said. "It's the commerce commission."

Sam Peltzman, professor emeritus of economics at the University of Chicago Graduate School of Business, said the ICC's responsibilities may have changed, but they have not disappeared.

For decades, the ICC determined how much electric utilities could earn, then set prices to yield that revenue. Because of deregulation, market forces will determine prices beginning in 2007, although the mechanism for that remains undecided.

Peltzman said the ICC will retain power to review prices to determine if they are fair.

"This gets into the stuff in which lawyers make fortunes," he said. "We are in for interesting times."